A Bullish Setup in Microsoft?

Everyone loves a good bullish RSI divergence.

I get it.

Price makes a lower low, RSI makes a higher low and suddenly we’re supposed to act like the bottom is in.

but slow down big shot. 

It's interesting.

But it’s not the trade by itself.

Think about it. 

This divergence is basically telling us the stock is still going down, but it’s going down with less downside momentum.

Great!

BUT.....we don’t get paid because something goes down slower.

We get paid when it goes up.

That’s the key.

Look at Microsoft here.

Price is still below the 200-day moving average. It’s still below the anchored VWAP from the all-time high. 

The trend is still damaged.

Step one is the divergence.

Step two is follow-through.

Give me a clean level where I can manage risk and say, “If this fails, I’m wrong.”

Until then, it’s just information.

Good information, sure.

But still just information.

Bullish RSI divergences are not classic traits of healthy uptrends. 

They usually show up in downtrends, corrections, and basing attempts.

So for now, Microsoft has my attention.

But I’m not losing sleep over it.

Anyway, that’s my two cents.